At the end of his speech, the governor said the state needs to reduce its rising pension and debt service costs.

"Here's the simple truth that everybody in this government knows," Christie said. "We cannot afford to do it."

He stressed the increase in the state's pension and debt service costs for fiscal year 2015 could approach $1 billion.

"That's nearly $1 billion that we can't spend on education, that we can't invest in infrastructure improvement," Christie said. "We have exciting choices to make but not the resources to do them, and if we continue in an era where we believe that we can choose everything, let me suggest to you that we're really choosing nothing."

Christie said for most of these issues, the time to act is now.

"If we do not choose to reduce our soaring pension costs and debt service costs, we will miss the opportunity to improve the lives of every New Jersey citizen," the governor said. "I'm ready to engage in those conversations and help, with you, to truly create in this state an honest attitude of choice."

The governor said he believed the result will be "a better, smarter, stronger New Jersey."

"Our destiny is not set, it is the product of the choices we make," Christie said. "Our future is not set, so let us act wisely."